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lorasvet [3.4K]
3 years ago
12

Yolanda is a cash basis taxpayer with the following transactions during the year: Cash received from sale of products $66,000 Ca

sh paid for expenses (except rent and interest) 40,000 Rent paid on a leased building for 18 months beginning December 1 45,000 Prepaid interest on a bank loan, paid on December 31 for the next 3 months 5,000 Calculate Yolanda's income from her business for this calendar year. If an amount is zero, enter "0". Sales income $ ___66,000______ Expenses: Other than rent and interest $ _40,000_______ Rent $__________ Interest $ ______0_____ Net income $_______
Business
1 answer:
riadik2000 [5.3K]3 years ago
8 0

Answer:

$23,500

Explanation:

Net income is arrived at by deducting relevant expenses for the year from the gross income for the year. In this question, sales income is used to represent gross income. The net income can therefore be calculated as follows:

Net Income = Sales income - Expenses other than rent and interest - Rent - Interest

Net Income = $66,000 - $40,000 - [$45,000 × (1/18)] - 0

                    = $66,000 - $40,000 - $2,500 - 0

                    = $23,500

Therefore, net income is Yolanda's net income $23,500.

Note that [$45,000 × (1/18)] is used to calculate rent for only one which is December of the calendar year since the rent was paid for 18 months.

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For a recent 2-year period, the balance sheet of Blue Company showed the following stockholders’ equity data at December 31 (in
Misha Larkins [42]

Answer:

Par value of common stock is $2.5

Explanation:

The par value of common stock can determined by dividing the common stock total amount in each of the two years by the shares issued and outstanding in each year as demonstrated below:

2019:

Par value of common stock =Common stock($)/shares issued

common stock($) is $555 million

shares issued and outstanding is 222 million shares

par value of common stock=$555 million/222 million=$2.5

2020:

Par value of common stock =Common stock($)/shares issued

common stock($) is $560 million

shares issued and outstanding is 224 million shares

par value of common stock=$560 million/224 million=$2.5

Ultimately the par value of common stock as shown be computations for both years is $2.5

7 0
2 years ago
Suppose the cost of flying a 100-seat plane for an airline is $50,000 and there are 10 empty seats on a flight. The average cost
Svetlanka [38]

Answer:

$500

Explanation:

The average cost per seat will be the total cost per plane divided by the seating capacity.

Therefore, the average cost of $50,000 divide by 100 seats

=$50,000/50 seats

=$500

3 0
2 years ago
Ariel wants to compare the salaries for positions she was offered at two companies. What should she consider in this process?
german

Answer:

  • <em>She should research the cost of living of different locations to compare against the offered salaries.  </em>
  • <em>She should research the benefits included in each offer. </em>
  • <em>She should research the average salary of similar positions to see if the offers are fair. </em>

Explanation:

  • Remember, the cost living at the different locations is good basis to determine how much the actual value of he salary will be worth. For instance if location A pays her $5000 a month and her living expenses from the location takes about $4500, while location B pays her $3500 a month with a living expense of $1000, then she rather goes for location B she has more extra income.

  • Secondly, the benefits included in salaries is also to be considered. Does it includes medical insurance, transport allowance etc.?

  • Third the average industry pay level would also help Ariel know whether to accept any of the offers or not.

8 0
3 years ago
Read 2 more answers
Adamson, Inc. has the following cost data for Product X: Direct materials Direct labor Variable manufacturing overhead Fixed man
stepan [7]

Answer and Explanation:

The computation of the unit product cost using absorption costing and variable costing is shown below

Under absorption costing

Particulars                   2,000 units             2,500 units               5,000 units

Direct materials per unit     $41                      $41                        $41

Direct labor per unit            $57                     $57                        $57

Variable manufacturing                

overhead per unit                $7                        $7                         $7

Fixed manufacturing

overhead per unit                $10                      $8                         $4

 ($20,000 ÷ 2,000 units)   ($20,000 ÷ 2,500 units)      ($20,000 ÷ 5,000 units)

Unit product cost                 $115                     $113                      $109

Under variable costing

Particulars                   2,000 units             2,500 units               5,000 units

Direct materials per unit     $41                      $41                        $41

Direct labor per unit            $57                     $57                        $57

Variable manufacturing                

overhead per unit                $7                        $7                         $7

Unit product cost                 $105                     $105                    $105

8 0
3 years ago
Marin Company's accounts receivable arising from sales to customers amounted to $88000 and $77000 at the beginning and end of th
anzhelika [568]

Answer:

Marin Company

Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

$345,000

Explanation:

a) Data and Calculations:

Accounts Receivable (Beginning) $88,000

Accounts Receivable (Ending) $77,000

Increase in Cash received from customers = $11,000

b) Income reported on the income statement for the year = $334,000

Increase in Cash received from Customers =                               11,000

Cash flows from operating activities to be reported =           $345,000

c) The Accounts Receivable reduced from $88,000 to $77,000.  This implied that some customers settled their accounts.  Therefore, there was inflow of cash from customers.  This increases the cash flows from operating activities.  This is why the difference is added to the Income as per income statement as a change in working capital.

5 0
2 years ago
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